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Term Life Insurance

Term life insurance will provide a lump sum benefit which is currently tax-free, if during the term(amount of years life policy is in force) the insured person dies. Term life insurance provides protection only, with no investment element and therefore has no cash in value at any time. Our online UK Life Insurance quotes are only available to UK residents.

 Level Term Life Insurance - As its name implies this type of life insurance provides a level benefit during the term of the policy.

 Decreasing Term Life Insurance - Often known as Mortgage Protection ,this type of life insurance will provide a benefit which decreases during the term of the policy. Family Income Benefit is also an example of a decreasing term life insurance.

 Increasing Term Life Insurance - You can arrange for your life insurance benefits to increase during the term of the policy,  the benefits will usually increase in line with the retail price index(RPI) and your premiums will also generally rise in line.

 Joint Life Term Insurance - Provides a benefit on first death only , if you require a separate benefit to be paid on each death  you should consider taking out two separate life insurance policies which may prove to be not much more expensive.

Term life insurance - things to consider

How much life cover is required?                                                                                                                                             The amount of benefit required (sum assured) will depend on your circumstances, if you have dependents and you are the main source of income you should ensure that the life insurance will enable your dependents to be financially comfortable if anything were to happen to you, take into consideration your outgoings, the reduced cost of living expenses if you were no longer around and any other benefits that may be payable (pension etc). Term life insurance does pay a lump sum benefit so can be used to pay off any large outstanding debts (mortgage etc.) or can be invested to produce an income.

 For how long do I require term life insurance?                                                                                                                                                The term of the life cover should correspond with a time when a loss of  the breadwinner will not be as financially challenging to the surviving partner or dependents, this could be when children are no longer  financially dependent or outgoings and costs are likely to have lessened.

 Increasing or level term life insurance?                                                                                                                                            Do you require a benefit which will increase during the term of the policy to ensure that the spending power of the life insurance benefit is not eroded due to inflation. Premiums will also increase if you decide to take the index-linking option which will increase benefits usually in line with the retail price index.

 Guaranteed or reviewable premiums?                                                                                                                                              Guaranteed term life insurance premiums remain the same throughout the term of policy and are often more expensive than reviewable rates which are reviewed at regular intervals and can increase or decrease.

 Should I choose waiver of premium?                                                                                                                                              Waiver of premium will continue to pay the premiums due on your term life insurance if you are unable to do so because of illness/accident preventing you from working (definition will vary between providers) this is an extra benefit and will result in larger premiums.


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